Question

Which of the following commercial liability policy versions covers injuries sustained during the policy period even if the claim is not actually filed until years after the policy has been canceled?

A) Claims-Made policy
B) Occurrence policy
C) Umbrella policy
D) Property insurance policy

Answer 1

The Occurrence policy covers injuries that happen during the policy period, even if the claim is filed after the policy has been canceled, differentiating it from Claims-Made policies and others like Umbrella or Property insurance policies.The correct option is B.

Step-by-step explanation:

The correct answer to the question is B) Occurrence policy. This type of commercial liability insurance covers injuries and incidents that occur during the policy period, regardless of when the claim is actually filed. This is in contrast to a Claims-Made policy that only covers claims if they are filed during the time the policy is active. An Umbrella policy provides additional layers of liability coverage above the primary policy limits, while Property insurance policy covers damages to physical property, such as a dwelling that has been burglarized or damaged.